PARIS (Reuters) – Wall Street is expected to rise and European stocks rose mid-session on Monday, after Britain’s new finance minister confirmed the cancellation of most of his predecessor’s budget bill, which had triggered a financial storm last month.
Futures on major New York indices are signaling an opening up 0.94% for the Dow Jones, 1.2% for the Standard & Poor’s 500 and 1.38% for the Nasdaq.
In Paris, the CAC 40 gained 0.77% to 5,977.40 points at 11:00 GMT. In London, the FTSE 100 takes 0.53% and in Frankfurt, the Dax advances by 0.89%.
The EuroStoxx 50 index is up 0.74%, the FTSEurofirst 300 0.66% and the Stoxx 600 0.9%.
Appointed Chancellor of the Exchequer by Prime Minister Liz Truss on Friday after the dismissal of Kwasi Kwarteng, Jeremy Hunt announced that the majority of the tax measures detailed on September 23 had been abandoned altogether.
He specified that the new measures planned would make it possible to raise some 32 billion pounds sterling (about 37 billion euros) in a full year, referring in particular to a gradual end to the capping of energy prices.
His statements confirm the return of the Truss government to a line of budgetary rigor while the growth recovery plan unveiled on September 23 by Kwasi Kwarteng had triggered severe turbulence on the debt and foreign exchange markets, raising fears of major difficulties. for some large pension funds.
“The new Chancellor of the Exchequer has reset British fiscal policy, although we will have to wait until the end of the month to know the full details,” summarizes in a note Gille Moëc, chief economist of Axa Investment Managers.
“The next two weeks will be crucial for investors as they await the full draft budget amid continued political instability,” he added.
British budgetary news largely dominates this first session of the week, but investors remain attentive to the quality of the publication of results, which will multiply in the United States then in Europe, and to the debate on American monetary policy (the Beige Book of the Fed will be published on Wednesday).
RATE
Down sharply from the start of the session, British government bond yields amplified their decline after Jeremy Hunt’s statements: the ten-year thus fell 36 basis points to 3.969% and is heading for its biggest drop. on a session for two weeks.
In its wake, the ten-year German fell to 2.247%, down 11 basis points, and the ten-year American to 3.9508%, down nearly six points.
CHANGES
The pound sterling also benefits from the shift made by the government of Liz Truss: it appreciates by 0.97% against the dollar and by 0.71% against the euro, even if it remains below its highest levels of the last week.
The general upturn in risk appetite more widely diverts traders from the dollar, which fell 0.33% against a basket of benchmark currencies.
The euro took advantage of this to rise to 0.9747 dollars (+0.29%).
WALL STREET VALUES TO FOLLOW
The session on Wall Street will be animated, among other things, by the presentation of the quarterly results of Bank of America, which rose ahead of the stock market despite a drop in profits linked to the increase in its reserves for credit losses.
VALUES IN EUROPE
In Europe, among the strongest sector increases at mid-session are once again compartments sensitive to changes in interest rates such as that of utilities, which gained 1.7%, but also more cyclical sectors such as the automobile (+1.73%), driven among others by Volkswagen (+3.41%) and Renault (+2.73%).
In the banking sector, Credit Suisse gained 1.22% after the announcement of the amicable settlement, for 495 million dollars, of a dispute with American justice relating to securitized real estate loans (RMBS).
OIL
The oil market is moving up and down, torn between the beneficial effect of the announcement by the People’s Bank of China of new credit support measures and fears of a deterioration in global demand.
Brent, which fell 6.4% last week, gained 0.55% to $92.13 a barrel after losing as much as 0.42%; US light crude (West Texas Intermediate, WTI) took 0.42% to 85.97 dollars.
MAIN ECONOMIC INDICATORS ON TODAY’S AGENDA:
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
USA 12:30 am Empire October activity index -5.0 -1.5
State”
THE MARKET SITUATION
(Some data may show a slight shift)
WALL
STREET
Indices Last Var. Var. %
r dots
Dow Jones 30002, +294.0 +0.99%
00 0
S&P-500 3639.0 +41.50 +1.15%
0
Nasdaq-100 10888, +144.0 +1.34%
00 0
“The Day Ahead” – Update on the
next session on Wall Street [DAY/US]
The session
former
:
Closing Indices Var. Var. %YTD
e dots
Dow Jones 29634, -403.8 -1.34% -18.45
83 9%
S&P 500 3583.0 -86.84 -2.37% -24.82
7%
Nasdaq 10321, -327.7 -3.08% -34.03
39 6%
Nasdaq 100 10692, -341.5 -3.10% -34.49
06 2%
MARKETS
EUROPEANS
Indices Last Var. Var. %YTD
r dots
Eurofirst 1561.0 +11.36 +0.73% -17.42
300 0%
Eurostoxx 3406.2 +24.55 +0.73% -20.75
50 8%
CAC 40 5,977.4 +45.50 +0.77% -16.44
2%
Dax 30 12541, +103.8 +0.83% -21.05
66 5%
FTSE 6897.0 +38.29 +0.56% -6.60%
8
SMI 10412, +82.91 +0.80% -19.13
25%
The values to follow in Paris and
in Europe : [WATCH/LFR]
CHANGES
Standby Price Var.% YTD
Euro/Dlr 0.9747 0.9719 +0.29% -14.26
%
DLR/Yen 148.82 148.74 +0.05% +29.34
%
Euro/Yen 145.09 144.65 +0.30% +11.33
%
Dlr/CHF 1.0020 1.0051 -0.31% +9.84%
Euro/CHF 0.9768 0.9774 -0.06% -5.80%
Stg/Dlr 1.1295 1.1170 +1.12% -16.51
%
Index $ 112.94 113.31 -0.32% +17.44
30 10%
RATE
Last Var. Spread/Bund
r (pts)
Futures 137.29 +1.210
Bund 00 0
Bunds 10 2.2440 -0.113
years 0
Bund 2 years 1.9210 -0.034
0
10-year OATs 2.8350 -0.120 +59.10
0
10-year Treasury 3.9467 -0.059
0
2-year Treasury 4.4454 -0.062
0
OIL
(in Progress Previous Var Var. % YTD
dollars) ent
Light crude 85.93 85.61 +0.32 +0.37% +40.39
US%
Brent 92.05 91.63 +0.42 +0.46% +39.41
%
(Writing by Marc Angrand, editing by Kate Entringer)
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